Laojiu’s Observations | $OSMO : 55 million tokens to be burned—why am I not rushing to turn bullish?
Today, a small-cap asset worth watching is Osmosis (OSMO). Osmosis is currently voting on Proposal 1057, which plans to permanently burn 55 million OSMO from the community pool, bringing the cumulative burn to over 100 million tokens. That’s about 7% of the current supply.
But I think what’s really worth examining here isn’t simply the “token burn is bullish” narrative.
First, let’s look at the changes already made:
On October 25, Proposal 1053 passed, halting new OSMO inflation. Staking rewards will now be funded by protocol revenue. Proposal 1057 is now set to permanently burn the 55 million OSMO that had accumulated in the community pool.
Together, these two measures form the full tokenomics story:
No more issuance + permanent burns + staking rewards shifting to protocol revenue.
But one detail shouldn’t be overlooked:
The 55 million tokens were already in the community pool and weren’t part of routine circulating sell pressure. This burn is more like turning what was previously a “soft burn” into a permanent one—not a sudden 7% reduction in tradable tokens on the market.
Today, a small-cap asset worth watching is Osmosis (OSMO). Osmosis is currently voting on Proposal 1057, which plans to permanently burn 55 million OSMO from the community pool, bringing the cumulative burn to over 100 million tokens. That’s about 7% of the current supply.
But I think what’s really worth examining here isn’t simply the “token burn is bullish” narrative.
First, let’s look at the changes already made:
On October 25, Proposal 1053 passed, halting new OSMO inflation. Staking rewards will now be funded by protocol revenue. Proposal 1057 is now set to permanently burn the 55 million OSMO that had accumulated in the community pool.
Together, these two measures form the full tokenomics story:
No more issuance + permanent burns + staking rewards shifting to protocol revenue.
But one detail shouldn’t be overlooked:
The 55 million tokens were already in the community pool and weren’t part of routine circulating sell pressure. This burn is more like turning what was previously a “soft burn” into a permanent one—not a sudden 7% reduction in tradable tokens on the market.
